Reader Jeff also requested to see our ultra-simple example system on United States Oil Fund LP (AMEX: USO). Three trades, for net +$2.35 per share.

Thanks for the suggestions, Jeff! I’m enjoying pulling up the charts you all select. If you aren’t aware, I’m trying to show how just a couple eotpro elite series indicators can make a profitable system that works on stocks. I’m not cherry-picking trades… I show the whole day’s action. I’m not using convoluted rules… just enter after a pullback to the averages, when the volume pressure and paintbars agree. Exit when the volume pressure subsides, or if we push past the averages and the previous price swing. I hope you all find this as interesting as I do.

Jeff asked for a chart of UltraShort Financials ProShares (AMEX: SKF) in the comments. You can see here that there wasn’t much action for our simple example system on SKF today… during a lot of the down move, the volume pressure was to the upside. I suspect that sometimes the arbitrage on ETFs will skew the volume pressure. Nevertheless, we made 2 trades for +$1.37 per share.

Here is the chart:

At the request of reader Quentin, here is today’s chart for UltraShort QQQ ProShares (AMEX: QID). It was a low-volume day, so not many bars….

Once again, we see how blindly exiting on the first bar where the volume pressure changes color can leave a lot of money on the table. Still, it’s been very reliable, across all the stocks I’ve featured so far. I’m trying to be very mechanical about these examples.

Today, we have 3 trades for a gain of 49 cents/share on QID.

I think it’s great fun to show how just a couple eotpro indicators can work together to provide a nice robust manner of trading.

Hi, all! Today, for my daytrading demo, I picked the first stock that came to mind… Apple Inc. (Nasdaq: AAPL)…. since the logo is on my mouse, my laptop, my phone, my iPod, etc, it’s hard to blame me. Just like in ES, we had a pretty smooth down-trend today. Four trades for four wins.

If you have missed the last few days, I’m highlighting one stock a day to show people how well just a couple eotpro indicators perform on stocks. I didn’t research any complicated method. Basically, you wait for pullbacks to the moving averages, and get in when volume pressure and paintbars agree. You get out when volume pressure subsides. If you look at a lot of the examples, you will see that this is a totally sub-optimal system for exiting a trade… but it is more-or-less mechanical, which I hope helps people to see that I am not cherry-picking trades or fudging the results. I show the whole day on the stock, etc.

I also encourage readers to point out stocks they’d like to see presented… if there are no suggestions I just pick a stock at random… and if you think I’m cherry-picking the stock, then you have no idea how lazy I am!

Stocks Mentioned In This Article
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AAPL	| |

No one left a comment today requesting any particular stock, so I went over to Trader Jamie’s site, which is one of my favorite stock trading blogs. Jamie highlighted a trade on Nordson Corporation (Nasdaq: NDSN), so I picked it as well.

For our ultra-simple eotpro system, NDSN was kinda a pain… it’s one of those stocks that’s not normally too liquid, but had an explosion of volume today. So, the action was shaky…

Still, after 6 trades we were up $1.05 or so, per share. Not bad… if you look at the charts I think you can imagine how a human trader could do a bit better by not waiting for the close of the entry candles in a couple places… I mean, even the largest gain opened up short at the bottom of a 50-cent-wide candle.

But the point is not to be optimal… the point is to show some charts that use very little judgment and no cherry-picking. That’s why I encourage readers to select the stocks they are interested in, and why I post the entire day’s worth of charts, etc.

Here are the charts:

Stocks Mentioned In This Article
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NDSN	| |

Here’s a counter-trend trade on the ES futures in the afternoon. In the video, I give my rationale for getting in, and my rationale for getting out. Did my trade work, or do I eat ramen noodles tonight? Watch and find out!

So I got tired of waiting on the after-trade outcome when recording the video, so here’s a screenshot of what happened: just a link so I won’t spoil the outcome of the movie (click to see the image).

Dude, how can anyone trade without that volume splitter? Available exclusively from eotpro. (disclaimer: I created the volume splitter and get the money when you sign up for the elite series. But, seriously… look at the entries on this blog since I created that thing… it’s freakin’ awesome).

(hmm… did my disclaimer spoil the outcome? Well, hopefully you saw the movie first!)

Have a good weekend everyone!

Here’s an example of a triple-screen entry from this morning on the S&P 500 Futures (@ES):

As always, we see that: (1) there is a clear uptrend on the context chart (upper left). The eotpro Bid/Ask Histogram is green. Then, (2) on the main chart on the right, we have a hook up in the stochastics when the large traders are net positive, and the paintbars are greenish. So we pick an entry from the fine-tuning chart (lower left chart).

This one really shows off the value of the fine-tuning chart, too… since you can see that it’s worthwhile to wait for a green bar to get in around 8:44… this way you don’t have to sit through that retrace!

Reader James H requested the chart for United States Steel Corporation (NYSE: X), and so I made a note to post it tomorrow. But, I’m having too much fun showing these off.

Anyway, with that said, here’s how our ultra-simple criteria worked: It was five trades on X, with 4 wins and 1 loss, and a net gain of $2.05 per share. Not bad at all! It’s too bad there wasn’t a clear push off of the moving averages around 13:44.. because that would have been a nice ride up. Still, I want to stick to crystal-clear criteria and only trade very clear entries. Otherwise, people come up from the woodwork accusing you of ripping people off…

new rule: and don’t worry… I’ve checked all the charts I’ve posted so far to make sure I’m consistent. In this chart we had a case where a loss blew right past the previous swing high, and the moving averages, and the paintbar changed color against us, while the volume pressure was still on our side. In a case like that, I’m going to take the loss. Which is the most important factor? Not sure yet… this case doesn’t happen often and I’d need to see it happen on more stocks before I can tie down exactly what the mechanical criteria would be. But, to me, clearly this was a case where the trade was not working, and any sensible trader would take the loss.

So, work with me on this one… Let’s make the tentative criteria: if it crosses the moving average, and the paintbar changes color, go ahead and get out.

As always, feel free to post stocks you’d like to see… this really will die down to one a day, soon… I’m just too thrilled right now with what I’m able to show you. I didn’t even do any research… I just threw the paintbars and averages I’ve been using on @ES up, and it seems to be fantastic so far.

Stocks Mentioned In This Article
Stock	Links
X	| |

Congrats to Dave Mabe of StockTickr, who just got an article published in TAoS&C. Check it out!

Reader Quentin also asked to see the indicators on Alaska Air Group, Inc. (NYSE: ALK) yesterday. Man, Quentin in needy! Still, I have come through for him. It’s a pleasure to see how well the indicators do. In general, I plan to feature 1 stock per day, but I thought I’d start us off with several, since Quentin asked so nicely.

As with all these posts, no funny business… I just pull up the appropriate volume chart for its 30-day average daily volume, and put the same set of indicators (exact same settings) on the chart. I show the entire trading day. Then I highlight the entries on pullbacks to the averages when the paintbar and the volume pressure agree. Then I blindly exit the whole position the first bar that the volume pressure changes color. Is this the ideal way to trade? Not by a longshot. But, it’s fairly unambiguous, and shows off how nice my elite series indicators are on stocks.

I hope you agree!

Of the three stocks posted today, this had the fewest trades. 2 wins and 1 loss, net gain of $0.45 per share.

Stocks Mentioned In This Article
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ALK	| |

Reader Quentin also asked to see the indicators on UltraShort Oil & Gas ProShares (AMEX: DUG) yesterday. Always a humble servant to my readers, I complied. I used the same simple entry and exit criteria as I have on the other examples so far.

Here are the charts… 5 trades for 4 wins and 1 loss… net +$1.80 per share, or so…

Reader Quentin asked to see the chart for McDermott International (NYSE: MDR) yesterday. So, here it is! As I mentioned yesterday, I plan to show the whole day when I do these, so that I am not accused of cherry-picking. I plan to just use a couple eotpro indicators, and use very simplistic entry and exit criteria. Basically, you enter on pullbacks to the moving averages, if the volume pressure and the paintbar colors agree. You get out the first time the color on the volume pressure indicator changes.

A real human could no doubt do better than this ultra-simple criteria… especially when it comes to choosing exits. A big chunk of the uptrend was missed because of a single red volume pressure bar. But, I want to make it as clear as possible that I’m not fudging the results. And, I think, the results are very nice! No losses on this stock, for a gain of $1.26 per share or so.

The MDR charts:

Stocks Mentioned In This Article
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MDR	| |

I haven’t talked about stock trading much lately… and in a way it’s a shame because my eotpro elite series indicators do work very well on stocks. So, how about this… I will start showing the day in various stocks, with my indicators on them. I’m not going to cherry-pick anything… I’ll show the whole day. I hate it when I’m accused of cherry-picking! :-)

You can leave comments about which stocks you’d like to see, and I’ll feature them. I may even start showing how you can use EOTPro stuff to pick swing-trading candidates. Yes, most of the indicators do quite well on 60-minute and daily charts, too…

To keep things simple, at least today, I just did this…

• pick the first stock that comes to mind… I picked Exxon Mobil Corporation (NYSE: XOM), one of my old favorites… very liquid!
• I pulled up a daily chart to get the 30-day average volume. It was around 30 million.
• I looked up an appropriate trading volume chart from my quick reference guide. It called for 121393 share bars.
• I applied my rolling-vwap paintbars, my cycle-EMAs, and my bid/ask histogram
• I marked trades with a vertical line when price trended against the EMAs, with the paintbars the correct color, and the bid/ask histogram pointing in the right direction
• I marked exit areas with an ellipse when the volume pressure subsided on the bid/ask histogram

Here’s the day in XOM, then… 4 trades… trade 1 could be closed for a small gain, or break-even if you were skittish. Trade 2 was a short trade for at least 40 cents or so. Trade 3 was a long trade for around 70 or 80 cents. And trade 4 would be closed out when the markets closed, for a small gain.

Not bad! And that’s just trading a single chart without any context to help you figure out the overall trend, or overall support and resistance.

Anyway, hopefully that was interesting. Feel free to give suggestions about stocks you’d like to see… otherwise I’ll pick my old favorites, and the typical liquid daytradeable stocks.

Stocks Mentioned In This Article
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XOM	| |

I tried to buck the trend and go long as price curled up… did I succeed?

Well, yes and no. I made money on this trade, but didn’t get the move I was looking for. This video shows how you can use the eotpro volume splitter to find out if the probabilities are in your favor. Even though I created it, and make money when you subscribe, I have no choice but to say I really love that indicator. You’ll just have to forgive my enthusiasm…

But, was this a bad trading idea? Not at all! The market proceeded to validate me after it took me out. Check out how the move I wanted happened on the next upswing, with nice confirmation from the large traders. Was I in that one? Nope… I was getting the video put on youtube. See what kinds of sacrifices I make for you people?? :-)

Here’s another one:

This one was scary! Big pushes up against me on low volume. But, thanks to the volume splitter, I knew that the large traders were at a standstill, and I waited until I could eek out a little profit. Now, I normally preach to people that they should get out for break-even plus or minus a couple ticks when the large traders do not confirm the move. In this trade I got a chance to get out +1 tick, but I decided from experience that it was likely that we’d get a low-volume fake-out push down. We did, in fact, and I covered for +1 point. Only advanced traders should try that move, though, in my opinion… I was gambling a bit there.

Anyway, I hope you are liking the live trades… I plan to do lots more of them going forward… one way or another.